Chart of the Week: S&P 500 Breakout

The 10 month consolidation ends with a breakout into a new trading range — and (of course), that’s bullish. Traders should use the double red line as their stop loss — any break of that suggests a market sliding back into the prior range.

SPX Breakout within the larger uptrend channel click for larger chart

Chart courtesy of Redwood Technimentals

Note that the upper green line of the channel — 1310 or so — becomes the new target.